Malaysia orders Goldman Sachs to refund $600 million 1MDB fees

Malaysia orders Goldman Sachs to refund $600 million 1MDB fees

As a fall-out of the 1MDB corruption scandal, the Malaysian government has ordered Goldman Sachs to refund all the professional fees it earned in the deal.

Goldman Sachs acted as the financial adviser in the 1MDB fundraising deals under the former Prime Minister Najib Razak.

The US investment bank helped the state fund 1Malaysia Development Bhd (1MDB) raise money as well as consequential losses, Minister of Finance Lim Guan Eng said on Tuesday.

“The Malaysian government will want to reclaim all the fees paid, as well as all the losses including the interest rate differential,” Lim told reporters. He said the rate Malaysia received was about 100 basis points higher than the market rate.

According to data compiled by Reuters News, Goldman Sachs earned about $600 million in fees for its work with 1MDB, which included three bond offerings in 2012 and 2013 that raised $6.5 billion.